From today, June 1, 2022, the amount of supplementary insurance contributions is reduced from 6.5% to 6%, equal for employers and employees.
According to a statement from the Ministry of Labor and Social Affairs, this decrease follows the reduction by 3.9 percentage points of social security contributions, which were voted and implemented in the previous two years (2020-2021).
“As a result of these reductions, the so-called ‘tax wedge’, the disposable income of employees increases and, at the same time, there is a reduction in the non-wage costs of companies. “These, in turn, lead to increased business competitiveness and enhanced employment,” the ministry said.
According to Eurostat data, especially for low-paid workers, while in 2019, based on the size of the “tax wedge”, Greece was in 14th place among EU member states, in 2021, it rose to the 5th best position and with the current reduction, a further improvement of its ranking is expected.
The Deputy Minister of Labor and Social Affairs, Mr. Panos Tsakloglou, stated: “The reduction of insurance contributions, in combination with other government policies (tax, regulatory, licensing, etc.) leads to a rapid de-escalation of unemployment and an increase in employment . According to the latest data, since the New Democracy took office and despite the crises of the pandemic and the war in Ukraine, the unemployment rate fell by 5 percentage points, while employment increased by almost 350 thousand people. “The government will continue to pursue the reduction of non-wage labor costs, which leads to improved business competitiveness, increased employment, increased disposable income of workers and, ultimately, improved welfare of citizens.”
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